Micron (MU) Stock Gains Ground as Analysts Boost Targets Before Q2 Results

TLDR

• Shares have declined 15% since reaching an all-time closing peak of $437.80 on February 2
• Citi upgraded its price target from $385 to $430, reaffirming a Buy rating before the March 18 earnings release
• Susquehanna increased its target from $345 to $525, maintaining a Positive stance
• Analysts at Citi project DRAM pricing will surge 171% year-over-year in 2026 driven by data center expansion
• Reports indicate SK Hynix and Samsung secured exclusive HBM4 supply rights for Nvidia’s upcoming Vera Rubin accelerator, with Micron currently excluded

Shares of Micron advanced modestly on Monday, gaining 0.5% to close at $372.29, as market participants weighed optimistic analyst revisions against reports of South Korean competitors winning a significant Nvidia supply agreement.

Micron Technology, Inc., MU

The memory chipmaker has experienced recent volatility. Shares dropped 6.7% during Friday’s session and slipped an additional 0.9% on Thursday, marking a 15% retreat from the company’s record closing price of $437.80 achieved on February 2.

Market attention is now focused on Micron’s upcoming second-quarter financial results scheduled for March 18.

On Monday, two prominent Wall Street institutions announced enhanced price projections. Citi reaffirmed its Buy recommendation while increasing its target from $385 to $430. Susquehanna maintained its Positive outlook and implemented a more substantial adjustment, boosting its target to $525 from the previous $345.

According to Citi’s Atif Malik, strengthening memory pricing represents the primary catalyst. His analysis now anticipates DRAM average selling prices will climb 171% year-over-year throughout 2026, propelled by robust data center requirements. NAND pricing is similarly projected to advance 127% year-over-year on solid eSSD momentum.

Malik additionally highlighted industry reports indicating Samsung is implementing a 100% quarter-over-quarter DRAM price increase during the first quarter.

Citi’s research team observed that investor debate continues around whether the present memory expansion cycle mirrors the prolonged growth period witnessed during the 1990s Windows PC revolution. Their analysis suggests Micron stock can sustain its appreciation through 2026, although they cautioned that relative outperformance may moderate in Q2 following substantial Q1 gains.

SK Hynix and Samsung Grab Nvidia HBM4 Deal

South Korean media outlets reported over the weekend that SK Hynix and Samsung have been designated as exclusive HBM4 memory providers for Nvidia’s next-generation Vera Rubin accelerator. Barron’s indicated it had contacted all three manufacturers seeking verification.

The development initially sparked questions regarding Micron’s standing within the high-bandwidth memory segment.

However, independent analyst Richard Windsor from Radio Free Mobile challenged the pessimistic interpretation. He anticipates Micron will be incorporated as a supplier during the latter half of 2026 as production volumes escalate.

“Furthermore, I do not expect that Micron will suffer a loss of revenues, as everyone is fully booked out for 2026,” Windsor wrote. He explained that any manufacturing capacity initially allocated for Nvidia would be redirected to alternative customers.

What to Watch at Earnings

Susquehanna’s Mehdi Hosseini indicated that memory market supply and demand dynamics could reach equilibrium around mid-2027 as additional manufacturing capacity becomes operational.

He noted that increasingly complex AI processing requirements could sustain elevated memory demand even as profit margins potentially compress at that juncture.

Reviewing the previous three memory demand cycles dating back to the 1990s, Citi observed that Micron shares have typically reached their apex two to four months ahead of DRAM price peaks. Given expectations for continued DRAM price appreciation throughout 2026, Citi believes further upside remains possible.

Micron is scheduled to report second-quarter earnings on March 18.

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